B it discourages workers from shirking out of fear of

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Unformatted text preview: (b) It discourages workers from shirking out of fear of losing their high-paying job. (c) e Condorcet Paradox suggests that paying high wages will result in greater e ort by employees. (d) By paying a high wage, employers solve this adverse selection problem and motivate the employees to work harder. . Which of the following is not correct? (a) An example of adverse selection is man who tries to sell his used car without disclosing that it needs a new transmission. (b) e ”invisible hand” of a free market will always x the problems of adverse selection and moral hazar...
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